Corruption & Foreign Direct Investment: The Case of South Asia

Mumtaz Shah

MPRA Paper from University Library of Munich, Germany

Abstract: This paper empirically explores the influence of corruption, bureaucratic quality and government stability on inward FDI to four developing nations from South Asia, which are, Bangladesh, India, Pakistan and Sri Lanka. Owing to the long-term relationship with the host, absence of corruption and bureaucratic intervention are crucial location advantages of host countries, especially for those, which lack abundant natural resources, e-g SAARC economies, to attract foreign investors. For a thorough analysis, random effect panel method is exploited for aggregate FDI inflows in the host countries from 1985 to 2008. It is found that for foreign direct investors in SAARC nations: absence of corruption, honest public office holders, efficient bureaucracy and government stability count the most.

Keywords: FDI; Corruption; Bureaucratic Quality; Panel Data; SAARC countries (search for similar items in EconPapers)
JEL-codes: C33 F21 F23 K42 M16 (search for similar items in EconPapers)
Date: 2018-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in PUTAJ – Humanities and Social Sciences 1.25(2018): pp. 1-16

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/107253/1/MPRA_paper_107253.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:107253

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().